Petty cash is a little amount of money on hand that is used for paying little amounts due, rather than writing a cheque. Petty cash is also sometimes referred to as a petty money fund. The person responsible for the petty cash is known as the petty cash custodian.
Some illustrations for using petty cash include the following: paying the postal carrier service provider’s dues, reimbursing an employee for supplies purchased, or paying for bakery goods provided for a company’s early day meeting. The maximum amount in a petty cash fund will differ from organization to organization. For some organizations $50 is sufficient. For others, the amount in the petty cash finance will need to be above hundred dollars. When the money in the petty cash fund is low, the petty cash handler needs a cheque to be cashed in order to balance out the money that has been paid out.
Petty Cash Voucher
A petty cash voucher is usually a small piece of paper that is used to document a payment from a petty cash fund. Petty cash vouchers are also known as petty cash invoices and can be purchased from office supply stores. Besides the basic contents of petty cash voucher, receipts or other certification justifying the payment should be attached to the petty cash voucher. Some petty cash vouchers are already numbered and sometimes a number is assigned to it for reference and control. When the petty cash fund is reimbursed, the completed petty cash vouchers offer the certification for the replenishment check.
- Petty Cash Voucher forms should be kept in a locked cabinet, or other approved method of safekeeping. Access to such vouchers should be given to only few, authorized individuals.
- If someone other than actual person picks up the money then document the chain of custody for the cash. Also make an extra copy of this Voucher to let the advance sign for the money when it is given to them.
- One copy of the voucher should be retained for the record of department. Only one authorized and signed copy should be given at petty cash window.
- Duties among the various employees should be segregated. An employee who does not normally pick up money from the Petty Cash Window should reconcile signed copy of the Petty Cash Voucher.
- Separate Vouchers should be used for different budgets.
- Same form should not be used for Petty cash advances and reimbursements.
- A Petty Cash Voucher cannot be used to compensate the total cost of a purchase between two or more budgets. Vendors should be instructed to prepare separate receipts for items to be reimbursed against different budgets.
Necessary Information to be presented on Petty Cash Voucher
- Date of the transaction
- Party receiving money
- Purpose of payment
- Responsible department
- Person receiving the disbursement
- Signature of petty cashier
- Amount should be shown in both figures and numbers
Here is download link for this Petty Cash Voucher Template,